Pawtucket Downtown Loft Project Gains $400K Environmental Loan

PAWTUCKET, RI — The Rhode Island Infrastructure Bank has approved a $400,000 loan from its Brownfields Revolving Loan Fund to finance environmental remediation at the Nexus Lofts redevelopment project at 49 North Union Street, the old Feldman Furniture building.

The redevelopment will include 27 affordable market-rate apartments with ground floor office and/or retail, the public-private bank announced.

“Many commercial redevelopment sites in Rhode Island require some form of brownfield remediation, and that’s precisely what the Brownfields Revolving Loan Fund program is for,” said infrastructure bank CEO Jeffrey Diehl in a news release.

Diehl said the loan will help catalyze development at surrounding buildings. "We are pleased to help finance a portion of this key project for the continued revitalization of downtown Pawtucket,” he stated.

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Developer Michael Leshinsky thanked the bank and said the brownfield loan is a critical part of project finance and site redevelopment. He said the financing will help "unlock the full potential of our Nexus Lofts project."

The Valley Breeze described the project in August of 2019 when Leshinsky, Nicholas D’Agnillo and Nexus Holdings LLC sought a 10-year tax stabilization agreement from the city. The 1898 building had been vacant for decades.

“The project will add value to the city and local area,” Leshinsky said at the time. “The cost of development is high, and the tax stabilization agreement is needed for funding.” He said the developers applied for federal tax credits and other incentives.

The Rhode Island Infrastrucure Bank was established by the Rhode Island General Assembly in 1989 as the Clean Water Finance Agency. The bank's mandate was expanded in 2015 to include energy and brownfield remediation initiatives.